VAT on IT equipment and hotel services definitely goes up from 8 to 20 percent

Members of the government have agreed on economic recovery measures, and we have taken in consideration how much the price of consumer basket can go up. As for salary cuts, there won't be exception, says Lazar Krstic.

According to him, there is still no final list of groceries to be moved to a category of products and services on which a higher VAT is charged (20 percent), but he is currently sure that the new VAT rate will be charged on IT equipment and hotel services.

In his guest appearance on TV B92's show Kaziprst, Krstic explained that VAT increase did not necessarily mean that the price of food would go up, citing as an example the announcement of the Union of Bakers that the retail price of bread would not be increased, that is, that the VAT increase would be absorbed by manufacturers and sellers.